Finance
Under Ohio's mortgage law, which party has the right to foreclose when the borrower defaults?
AThe county sheriff automatically initiates foreclosure
BThe mortgagee (lender) has the right to initiate judicial foreclosure proceedings✓ Correct
CThe Ohio Division of Financial Institutions
DThe title insurance company
Explanation
The mortgagee (the lender holding the mortgage) has the right to initiate judicial foreclosure proceedings in Ohio when the borrower defaults on the mortgage obligation.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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